Aeroflot’s Acquisition Strategy
Russia’s flagship carrier, Aeroflot, is reportedly in the process of acquiring five used Boeing 737-800BCF cargo aircraft. These aircraft, previously operated by Atran Airlines, a subsidiary of the Volga-Dnepr Group, are intended to be used primarily for parts to support Aeroflot’s operational fleet. The Boeing 737-800s, crucial to the operations of Aeroflot’s low-cost subsidiary Pobeda Airlines, have become difficult to maintain due to the inability to procure new parts following Western sanctions.
The aircraft targeted for acquisition are currently grounded and stored at Moscow’s Vnukovo and Sheremetyevo Airports. Originally passenger aircraft, they were converted into freighters before being withdrawn from service due to sanctions imposed after Russia’s invasion of Ukraine in 2022. Their airworthiness certificates were revoked, and the ownership transferred from AerCap, an Irish-based leasing company, to their insurers.
Negotiations and Financial Aspects
Aeroflot is looking to negotiate directly with the insurers to transfer the ownership of these aircraft. The estimated value of each aircraft ranges between $8 to $9 million, or approximately eight to nine billion Russian Roubles. The negotiations are expected to be less complicated as the aircraft are already located in Russia and are registered under a Russian airline entity, which might exempt them from certain aspects of international sanctions.
Utilization of Aircraft
The primary intention behind acquiring these aircraft is not to reintegrate them into active service but to dismantle them for parts. This approach aligns with Aeroflot’s broader strategy to maintain serviceability of its existing fleet amidst parts shortages. The unconventional process of cannibalizing aircraft for parts has become a necessary strategy for many Russian airlines due to the ongoing sanctions.
Experts from the Russian media outlet Kommersant suggest that converting these freighters back into passenger aircraft would be prohibitively expensive and logistically impractical. Thus, the focus remains on utilizing these aircraft to ensure the continuous operation of Pobeda Airlines’ fleet of Boeing 737-800s, which are vital for domestic and certain international operations.
Broader Implications and Future Strategies
The sanctions have forced Russian airlines to adapt quickly. Aeroflot has been at the forefront, reportedly acquiring over 100 Western-built commercial aircraft since the onset of the sanctions, either for active use or for parts. Additionally, the airline has engaged Russian manufacturing firms like Rosatom to produce replica parts for Western aircraft, further illustrating the shift towards self-reliance.
Recent regulatory changes have also allowed Russian airlines to enter into leasing agreements with domestic firms for Western-built aircraft, facilitating continuous operation despite sanctions. Moreover, Aeroflot’s recent agreement for the wet-lease of three Airbus A330s from iFLY highlights ongoing efforts to maintain a robust fleet through creative leasing arrangements and acquisitions.